The year is 1999, Mark Kuban is sitting in his office on Broadcast.com in Dallas. His flickering CRT monitor displays my.yahoo page and the record of his company on full screen. He is minutes away from becoming a billionaire and wants to see the moment live. After frantically pressing the F5 key for hours, this finally happens. The share price reaches a peak value, making him an instant billionaire (on paper). Mark is 41 years old and is on top of the world.
From that day on, Kuban became one of the most successful entrepreneurs in the world. He has a net worth of $ 4.5 billion and holds the record for the largest single e-commerce transaction: $ 40 million for a private jet. He bought a majority stake in the Dallas Mavericks from the NBA for $ 285 million and has invested more than $ 20 million in various startups since first appearing at Shark Tank in 2011.
The question is, how Mark Kuban manages to achieve his success?
Cuban understands what it takes to be wealthy and successful, and he’s not hesitant to share his knowledge. Learn how to budget money and think like a billionaire by following Mark Cuban’s advice.
Live like a student
Most students don’t have money. They live on a limited budget, do not own many things, and do not buy fancy things. This is exactly how you should start if you want to be able to devote all your energy (and extra money) to your project. This is true not only because you may not actually have much money, but also because the less you have in life, the less confusion you create for yourself. Things tend to weigh on us. So stay nimble and spend less.
Don’t use credit cards
A credit card is a card that has no money, but you can buy whatever you want with it. The bank borrows your money every time you need it. The problem is that it’s easy to get carried away by spending money you don’t have when you have the opportunity to do so. Then comes the interest and here goes the vicious circle.
A debit card is a card that only allows you to spend the money you have. This is much better because once the money runs out, the card becomes unusable. This does not mislead you into thinking that you always have money and can always spend on the next thing. With a debit card, you can budget much faster and reduce your chances of owing money to people you don’t want to have anything to do with (also known as debt collectors).
Invest up to 10% of your income in high-risk investments
If you are an adventurous type, you may want to risk something like 10% of your money in high-risk investments. Mark Cuban cites and gives examples of bitcoin and etherium as potential candidates that are valuable cryptocurrencies. Personally, I would say that any investment in which you do not have much idea what you are doing and buying the shares just because you like the company, qualifies as a risky investment.
Money is a side effect of success, not the goal
When you start the money tips are great, simply because you don’t have money in the beginning. But at the end of the day, what drives you shouldn’t be the thirst for more money, Cuban says.
Find a Way To Invest Inexpensively in the Market
If you want to try your hand at investing, Cuban recommends doing so responsibly to reduce your risk. He advised investing in low-cost mutual funds. These are investments that allow you to pool your assets with the assets of other investors, allowing you to diversify your portfolio at a lower cost.
As Cuban said: “If you can find a way to invest inexpensively in the market, you can start to build your net worth.”
There’s a link between being a knowledgeable shopper and being a savvy investor. Mark Cuban outlines how cash generates transitional returns in one of his blog entries on the finest investing advice. He recommends calculating how much you spend over the course of a year and then using cash, quantity, and discounts to achieve a greater return on your investment. To put it another way, it’s wise to buy in quantity.
Control your spendings
After graduation, Cuban moved into a house with five roommates, lived off macaroni and cheese, and drove an old vehicle, so he knows a thing or two about being disciplined and living frugally. Rather than spending money on material goods, he invested in himself and his long-term aspirations. Similarly, having a thrifty attitude might help you achieve your objectives.
To help you save money, live within your means, and cut back on your spending. Consider driving an older car, buying secondhand goods, living with your parents a little longer, or getting a roommate to lower housing expenses.
Have a solid emergency fund
You never know when you’ll lose your job or face a massive bill that your normal income won’t be able to meet. That is why having an emergency fund is so vital. If you don’t have one, you can find yourself in a lot of debt when unexpected costs come up.
People should save six months’ worth of living expenditures in a savings account, according to Cuban.